ACCOUNTING STANDARDS ISSUED AND NOT APPLIED
In May 2011, the International Accounting Standards Board ("IASB") issued IFRS 9, Financial Instruments, which is effective for annual periods beginning on or after January 1, 2015, with early adoption permitted. IFRS 9 is not expected to have a material impact on amounts recorded in the financial statements of CPPI.
Further details of the new accounting Standard and potential impact on CPPI can be found in the Company's Annual Report for the year ended December 31, 2012.
INTERNAL CONTROLS OVER FINANCIAL REPORTING
During the quarter ended March 31, 2013, there were no changes in the Company's internal controls over financial reporting that materially affected, or would be reasonably likely to materially affect, such controls.
RISKS AND UNCERTAINTIES
A comprehensive discussion of risks and uncertainties is included in the Company's 2012 annual statutory reports which are available on www.canforpulp.com or www.sedar.com.
SELECTED QUARTERLY FINANCIAL INFORMATION(11)
--------------------------------------------------------------------------- Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 2013 2012 2012 2012 2012 2011 2011 2011---------------------------------------------------------------------------Sales and income(millions of Canadian dollars)Sales $217.5 $201.9 $ 177.7 $210.8 $220.0 $212.7 $233.9 $242.1Operating income before amortization $ 37.9 $ 32.1 $ 6.9 $ 25.0 $ 28.7 $ 37.9 $ 50.3 $ 64.8Operating income (loss) $ 19.0 $ 12.1 $ (8.3) $ 10.3 $ 11.5 $ 16.5 $ 36.4 $ 49.8Net income (loss) $ 10.9 $ 5.4 $ (5.0) $ 3.0 $ 10.0 $ 15.8 $ 23.9 $ 48.2Per common share (dollars)Net income (loss) - basic and diluted $ 0.15 $ 0.08 $(0.07) $ 0.04 $ 0.12 $ 0.22 $ 0.33 $ 0.68---------------------------------------------------------------------------StatisticsPulp shipments (000 mt) 257.9 246.6 214.4 230.2 270.6 231.0 240.2 242.0Paper shipments (000 mt) 35.0 32.0 30.6 36.8 29.6 30.2 32.1 32.7---------------------------------------------------------------------------Average exchange rate - US$/Cdn$ $0.991 $1.009 $ 1.005 $0.990 $0.999 $0.977 $1.020 $1.033---------------------------------------------------------------------------Average NBSK pulp list price delivered to U.S. (US$) $ 897 $ 863 $ 853 $ 900 $ 870 $ 920 $ 993 $1,025------------------------------------------------------------------------------------------------------------------------------------------------------(11) Certain prior period amounts have been restated due to the adoption ofamended IAS 19, Employee Benefits. 2011 amounts have not been restated.Further details can be found in the Company's unaudited interimconsolidated financial statements.
Sales are primarily influenced by changes in market pulp prices, sales volumes and fluctuations in Canadian dollar exchange rates. Operating income, net income and operating income before amortization are primarily impacted by: sales revenue; freight costs; fluctuations of fibre, chemical and energy prices; level of spending and timing of maintenance downtime; and production curtailments. Net income is also impacted by fluctuations in Canadian dollar exchange rates, the revaluation to the period end rate of US dollar denominated working capital balances and long-term debt and revaluation of outstanding natural gas swaps and US dollar forward contracts.
